KNSL - Higher Interest Rates Gave This Growth Stock a Boost. Will It Continue?
2023-03-05 08:21:00 ET
Despite a volatile market over the past 14 months, Kinsale Capital Group 's (NYSE: KNSL) stock has rallied over 40% since the start of 2022. That's no surprise -- the specialty insurance company has done an excellent job growing its business for several years.
Insurance companies can be solid investments in challenging economic conditions because sales generally increase with inflation. They also benefit from higher interest rates, and in the fourth quarter, Kinsale saw its net investment income double from the year prior. Read on to see why insurers benefit from higher rates and why you should consider investing in Kinsale today.
In December 2021, inflation reached 6.8%, its highest level since 1982. Inflation wreaks havoc on the economy, increasing individuals' cost of living and hurting lower-income earners the most. To bring it down, the Federal Reserve is raising the benchmark federal funds rate, which determines banks' overnight borrowing cost.
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Higher Interest Rates Gave This Growth Stock a Boost. Will It Continue?